The Martha’s Vineyard Commission has adopted a $1.48 million annual budget, marking an increase of about $53,450 over last year — mostly in the areas of employee salaries and health insurance.

The six Island towns, along with Gosnold, pay the bulk of the MVC budget through property taxes, with remaining costs covered by grants, interest and other revenue. In the coming fiscal year, the towns will pay $1,035,391, an increase of 2.1 per cent.

“Our philosophy has been that if we needed revenue beyond what we’re generating at this rate, we’re going to have to raise it ourselves through grants and other kinds of mechanisms,” commission executive director Adam Turner said at a meeting on Thursday. “In terms of grants, I really believe we can do more.”

Revenue from grants, contracts and gifts is projected to grow 8.5 per cent in the new fiscal year beginning July 1, to $394,000, with interest and other income holding steady at $50,000.

Payroll expenses, which make up about 84 per cent of the budget, account for most of the new spending. Salaries for the commission’s 10 full-time staff members will increase 3.4 per cent, to $833,879, reflecting a one-per-cent increase in the cost of living, and a 2.4 per cent merit increase. Commission administrator Curtis Schroeder said the adjustments are equal to those in Island towns last year. The budget also includes $7,500 for intern salaries.

Spending on other post-employment benefits is projected to increase 14.9 per cent, including for future benefits, which have received an additional $5,000 each year since 2013. But the contributions for future benefits still fall short of the commission’s longer-term obligation to its employees. “We are well underfunded,” Mr. Schroeder said.

A $28,747 increase in medical and dental coverage (17.7 per cent) results partly from a rate increase in fiscal year 2017. According to the budget document, the MVC was not notified of the change until after adopting its annual budget last year.

Slightly lower administrative and operating costs will help offset the various payroll increases, with legal fees down 11.8 per cent, to $60,000; and maintenance costs down more than a third, to $10,000. At the same time, travel expenses, including conferences, are up by more than 50 per cent, to $10,000, to more accurately reflect average costs over the last five years.

The budget document notes a downward trend in heating and electricity costs, attributed to a new boiler in fiscal year 2014 and a new air conditioning system installed last year. Together, those costs are down 30 per cent, to $6,500.